Madness has returned to Wall Street: The tech giant is breaking the market
An unprecedented growth forecast of 70% has reignited the chip sector and sent the Nasdaq higher, but why does the US bond market continue to signal concern and caution?
Technology stocks led the gains on Wall Street this evening after Nvidia presented an exceptionally strong growth forecast and gave investors a renewed reason to believe that the artificial intelligence momentum is far from exhausted. The Nasdaq index rose by 1.1%, the S&P 500 index strengthened by 0.5%, and the Dow Jones added 0.2%.
At the center of the trading day were Nvidia shares, which surged sharply following the reports and the optimistic outlook for the coming years. The chip giant, which holds the highest market value in the world, expects its revenue to grow by approximately 70% in fiscal year 2028, compared to the analysts' forecast of 44% growth. Revenue in the second fiscal quarter totaled 96.2 billion dollars, more than double compared to the same period last year and above the forecast of 92.17 billion dollars.
The surge in the stock added approximately 487 billion dollars to the company's value during a single trading day. If the increase holds until the close, it will be a new record for the daily addition to the value of a public company. Nvidia also reported a profit of 2.22 dollars per share, compared to a forecast of 2.10 dollars, and stated that it expects its third-quarter revenue to reach 108 billion dollars.
The tailwind did not stop with Nvidia. Other chip stocks, including Broadcom and Intel, strengthened alongside the SOXX ETF. Amazon announced that it would add about two million Nvidia graphics processors to its data centers during 2027 and 2028. Together with the million additional chips announced in March, the cloud giant is expected to install about three million Nvidia chips.
Software and cybersecurity companies also stood out with gains. Salesforce surged after reporting revenue of 11.35 billion dollars and an adjusted profit of 5.90 dollars per share. Its investment in Anthropic contributed 2.6 billion dollars to the quarterly profit following the increase in the holding's value. At the same time, the companies announced a collaboration to integrate the Claude model into the Salesforce platform.
Okta and CrowdStrike joined the celebration after presenting quarterly results that exceeded analysts' forecasts and raising their own guidance. CrowdStrike surged by 18%, while the rise in Okta came after the company pointed to increasing demand for its products in light of the expansion of agentic artificial intelligence usage. Palo Alto Networks also benefited from the positive trend in the sector.
On the other hand, the bond market continued to signal caution. The yield on the 30-year US government bond climbed to 5.19%, while the yield on the 10-year bond stood at 4.67%. The increases were recorded against the backdrop of concerns about inflation and the US deficit, as investors await the speech of Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium.
On Wall Street, it is estimated that Warsh may present a firm stance regarding price pressures, with the goal of preventing a further rise in long-term yields. At the same time, the decline in oil prices from the level of more than 90 dollars per barrel recorded at the end of July reduced the probability of an interest rate hike as early as the Fed's September meeting.
